ZHD v SQO

ZHD v SQO

The court found to a high degree of probability that a binding London arbitration clause was incorporated into the bill of lading and bound SQO, that the Vietnamese proceedings were in breach of this agreement, the application was made promptly, and there were no strong reasons not to grant the antisuit injunction. The court granted both prohibitory and mandatory relief, as well as permission for alternative service out of jurisdiction.

Parties
Claimant/applicant: ZHD; Defendant/respondent: SQO
Jurisdiction
England and Wales
Judgment Date
29 April 2021
Procedural Posture
Commercial Court Application / Interim Application for Antisuit Injunction
Outcome
interim antisuit injunction granted
Legal Topics
Antisuit Injunction, Arbitration Agreement, Service Out of Jurisdiction, Alternative Service
Arbitration Shipping International Commercial Law Antisuit Injunction Arbitration Agreement Service Out of Jurisdiction Alternative Service

Case Brief

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Parties

ZHD

Claimant/applicant

SQO

Defendant/respondent

Procedural Posture

Commercial Court Application / Interim Application for Antisuit Injunction

Legal Issues

  1. 1 Whether an antisuit injunction should be granted to restrain proceedings in Vietnam in breach of a London arbitration agreement
  2. 2 Whether the arbitration clause is incorporated into the bill of lading and binds SQO
  3. 3 Whether the application was made promptly and before foreign proceedings are too far advanced

Ratio Decidendi

The court found to a high degree of probability that a binding London arbitration clause was incorporated into the bill of lading and bound SQO, that the Vietnamese proceedings were in breach of this agreement, the application was made promptly, and there were no strong reasons not to grant the antisuit injunction. The court granted both prohibitory and mandatory relief, as well as permission for alternative service out of jurisdiction.

Court Disposition

interim antisuit injunction granted

Orders

  • SQO restrained from pursuing Vietnamese proceedings in breach of arbitration agreement
  • SQO required to use best endeavours to procure a stay of Vietnamese action